Wednesday, July 21, 2010

Writing Assignment #2

For my interview about money I wanted to get the views of two different generations. Since both individuals would have a different experience and use for money. The first person was my grandmother who I was amazed did not know whose picture was on a twenty. Even though she uses cash more than a credit card. She told me she ‘believes’ in money because it’s what makes the world go around. Also that money is a type of bartering system. She also mentioned the ways that money is mentioned worldwide – that it is a universal commodity. She believes that the same currency will be used worldwide in the future, for example in Europe with the Euro. Since the world is becoming so small due to globalization, possibly that the United States currency would be used more worldwide. She could not imagine a time people might not believe in money since money has been around for so long in one way or another. Money is important for her money because it is valuable because it has value that society puts on it. You either have it or you don’t.

Asking her if she thinks the government was spending her money wisely she said no, that is why we are broke, the government spending money we don’t have, and that the U.S. government owes a lot. On asking her if money is important to her she said that you have to be frugal, that money is a round-robin cycle. Also, that you have to spend it on priorities in life that is. You have to save money, for it’s a goal. Also a type of layaway system by controlling your spending, money keeps people working. Money takes a priority in life depending on your lifestyle. Everybody wants money, but you have to work for it, that all depends on what you want out of life.

The second person I asked is a friend who has a degree in Economics. He knew that Jackson was on a twenty. He believes in money because we need a form of representation of value in order to trade goods. Because there were problems in the way people used to trade goods in the past, there were many economic problems such as the division problem when we were on the barter system. For instance the problem in dividing something for certain types of goods is why we need money. There is the whole argument about Fiat currency being false and having no value, that all relates to how people value it in their mind. As long as people believe that the currency has value then it does. The notion of intrinsic value, some believe that some things are inherently worth something. The other reason money is important is because of portability in dealing with the shipping of goods, for example in dealing with metals. Money facilities and speeds up the trade of goods and services across all kinds of different trades across space and time. Money is also a way of tracking, a universal unit of accounting. By making accounting universal can also make taxing possible by a government, in order to give people what they want. Also, a fiat currency is important in order to smooth transactions.

He did believe in a time in which people might not believe in money, because of their belief system, such as with the Native Americans. They did not believe in the concept of ownership, such as the ownership of land. Ownership is linked to money, for example having enough money to buy almost anything in the world. Except there are some cultures and their concepts were you should not buy or should buy certain things. People do not believe in money and only in physical things that had a use to them. People did not believe in money when there is a hyper inflation and people did not believe in the Fiat currency due to extreme devaluation. Money itself is not important to him but the value it represents and the value he can use it economically is. He also did not believe that the government was using our money wisely.

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